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tv   Squawk Alley  CNBC  June 5, 2014 11:00am-12:01pm EDT

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>> good morning. as you can see a full slate of tech stories today but overall a mixed day for stocks. dow has a new intraday high this morning, that dramatic decision by the ec fwoshgs cut their refi rate, introduce some lending facilities. the g-8 taking place in brussels as well. first general motors. fill art filly bow is live as they unveil the results of that internal investigation. hi, phil. >> carl, we just had a chance to talk with ceo mary barra during a press conference where she answered questions for about 45 minutes. here's the findings of this three-month investigation and what a lot of people are focusing on today is 15 employees have been dismissed from the company, some at senior
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executive level. five other employees linked with the defective ignition switch have been disciplined, still with the company, and ken feinberg, the lawyer who is administering a compensation fund for those who were injured or were killed in the gm defective switch recalls of these vehicle, he says that by august 1st he will have a plan put together. he's already drawn up some preliminary plans that he plans to share with mary barra and senior executives. i want to show you these two individuals, two engineers at general motors who were at the center of the issue involving this ignition switch defective at first, then a part change was made that nobody knew about. they have been dismissed from general motors. as for mary barra's explanation for what went wrong, she says it in blunt terms. here she is. >> valukas found in this situation was a pattern of incompetence and neglect.
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repeatedly, individuals failed to disclose critical pieces of information that could have fundamentally changed the lives of those impacted by the faulty ignition switch. from start to finish, the cobalt saga was riddled with failure, which led to tragic results. what valukas found was a pattern of deficiencies and miss judgments often based on incomplete day that that were passed off at the time as business as usual. >> take a look at shares of general motors year to date. down almost 11%. it was actually up premarket. we want to show you what the stock did once the markets opened and mary barra was giving her explanation of the investigation. stock is now down more than 1%. bottom line is this, carl. they basically look at this case and this three-month investigation says it was incompetent si and nemgs and nobody stepped up when they should have to say there's something wrong with this ignition switch. back to you.
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>> thank you very much, philip lebeau. joining us this morning henry blodget, ceo and editor in chief of the business insider. >> good to be back. >> looks like this deal might almost be done, sprint, of course, which is owned by japanese company softbank closing in on that deal to buy t-mobile, $40 a share, could be worth as much as $32 billion. may not be finalized for another six to eight weeks. today both stocks are down on that news. here's what was said at the code conference last week. >> not anything specific thing, but let's talk tact the concept. we need a skasm sketch e. i highly admire john ledger. >> cool. >> one of those guys who has an economy of language, asked
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directly about john ledger, says i admire him, doesn't mention the name but admits they need the scale. >> absolutely. and they do need the scale. both companies are at an incredible disadvantage. the idea that you have to xeept xooet with 50 million and 50 million approximately against these two behemoths doesn't make sense for anybody. >> t-mobile has riches when it comes to the amount of wireless resources that they have. they need to grow subscribers. ledger has been aggressively pushing these uncarrier ideas that basically pull people onto the platform because he doesn't have to worry about capacity as much. you wonder how that strategy would have to shift if you had a bigger company, more subscribers, integration issues. is he as good a ceo when he doesn't have to just be the maverick, he has to be the integrator? you don't know which way sprint might go with this bringing it together. >> always the question with a lot of these deals, too, who will end up running the pro forma company. these are part of the nuances that will get worked out in the
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coming weeks but in the past reports have said dan hessy is spent, he's ready to step down and if this company is combined it will be john ledger to run the companies. >> he's a great marketer and so much is about marketing. you can base it on the service level but ultimately it's about creativity, price, services, so forth. certainly great on that side. >> in terms of deregulation stand point, he's been in washington trying to sweetheart the lawmaker, but do you think this gets done if, in fact, it's proposed? >> i would hope that the lawmakers will recognize that we're in an unfair situation right now. you've got two huge companies that are duking it out and then two guys who have to fight for the scraps and that's not a good situation long term for them or for customers really. >> also has a big history in terms of changing the nature of broadband in japan. and now with that on his track record, makes fun of our own experience. at code last week he likened it to breathing the air in beijing. if you breathe it every day, you
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don't realize how bad it is nap's what he said about the state of broadband in this country. >> it's getting better. hopefully it gets better faster. >> when you think about just the scale of some of the deals that are on the table for the fcc right here, you have time warner/comcast, at&t/direct temperature, and if this happen, call it in the next two months, you would have then t-mobile/sprint which would have to get regulatory approval as well. is this first come first serve john or one that will take higher priority given the scale of these companies? >> if you're a regulator or consumer, or just watching this space, you're trying to figure out how do i think differently about what competition means in this environment? traditionally you think, okay, you want as many competitors as possible and that makes things better, but now there's more this argument we need monster, we need maybe a fewer competitors but bigger competitors that are able to compete more effectively against each other. we'll have to see which way the regulators come down on it. >> next up, amazon inviting the press to seattle on june 18th
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for a, quote, launch event. the company isn't saying anything other than jeff bezos will be in attendance. many are speculating amazon will announce a brand-new 3d smartpho smartphone. here's a quick teaser they posted on their site. >> wow. that is really cool. >> how does it do that? >> whoa. that's pretty -- >> i'm impressed. >> that's pretty damn intuitive. >> that's really cool. snild use that a lot. >> that's really cool. >> that's fantastic. >> do i have to give this back? >> people are taking a still frame from that teaser, which appears to show something that could be a phone and saying that amazon either willingly or inadvertently showed a picture of the phone. i love asking you about all things bezos because he's in stranger company. do you have any thought where is this is going? >> everyone's been expecting flaefr amazon's going to have a phone. it makes sense. there is an opportunity in the market for somebody to offer a much lower-priced phone, do
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something very creative on the pricing side, throws it in the market, makes it the tougher for apple. it will be interesting. this 3d thing, i have to say, if this is what we're leading with, i'm a little nervous about it. it may be damn intuitive and interesting that threw that into the video -- what do they have sensors going on here? what's going on at amazon? but a whiz-bang feature, i don't know if that's going to be as good as super cheap and convenient. >> here's the challenge up front. hardware isn't selling phones anymore. we've seen that with htc. a beautiful phone but they can't move to needle market-wise, google the same challenge with the mobile app. what is amazon going to do to change the mod snell is it going to be cheap hardware which hasn't worked for moto that well, except for maybe in e emerging markets? sit going to be changing how you pay for data plans, looping something into prime, pushing people toward the grocery and consumer package goods market
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where is they want to be? that is the value in having this dedevice in your handle. if you can buy things on the fly that add to your daily life. >> this is the big opportunity. the monthly plans are just outrageously expensive now. and to just make it simple, it's one price, all the data you can have, don't worry about voice because you've got what's app and skype and everything else you can use. a very simple opportunity there long term but it's not in anybody else's interest to go after it. >> i hate to spoil the party here, but what happens if it's not a phone? what happens if it's a remote control or something that is building on amazon's pantry tool, just a dij tap shopping cart you can carry around with you? are people disappointed? >> it's a phone. >> it will be better. we'll all look like idiots for a few minute, move on to, praise the new device. >> the fact bezos is expected to be there, john, materially significant? >> yeah. >> haven't seen him since, when, fire? >> yeah. in the fall. i think there was the last time came out. >> we'll see.
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certainly love to keep us get guessing and they're good at it. take a look at microsoft today in the green, after getting an upgrade at fbr capital. they say the new strategy is setting stage for new growth. office 365 poised to add significant value. tony belts in the running but did not get the top job is going to gopro as its new president. this comes as the camera company gegt ready to go public late they are year. typical pattern for those who don't get anointed as the new ceo, find opportunities elsewhere. >> absolutely. going back to microsoft, i think this call is very premature. it's still a cheap stock. maybe we get excitement and multiple expansion, but they are so far from being out of the woods in terms of being able to convert massive revenue and profit stream that is based on pc and pc software and enterprise software to the cloud where the analyst praises giving windows away for free. that's great for consumers.
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i don't know where the revenue comes from. again, we could have a run in the stock, excitement around it, but they are so far out from being done with this transition. >> reminds me of the note the other day, service pro 3, elegant but not going to move the needle. >> i think what might be smart about this call is that a lot of downside in microsoft had to do with the collapsing pc market and that isn't quite as bad as a lot of people expected at this point. the upside is microsoft has managed to monetize cloud and get margin out of it when a lot of other cloud players haven't. office 365 is working well. i don't know if anything's materially changed over the past couple months but it may not be a bad call. >> the tony beat move, if a company that's about to go public in the next call it month or so, we did see the s-1 file sod we know a road show is imnegligent here, when you think about his expertise, for people who don't know him well, going to a device company and a content company is that that's
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just about to go public, what sort of strength does he bring to that? >> potential masterstroke with gopro. i talked to tony bates when he was at cisco, and he was part of the team that determined early on that video was going to be an important driver of the broad band internet. he understands that on the technical side. he also went to skype, which has an end user, a consumer component so, he understands that piece. he was also on the board of youtube pretty early on so, the whole transcoding thing that's going to be important to gopro he also understands. >> the perfect experience for this. for go skwn pro to have a sustainable long-term business they really do want to get into the continue ten piece, subscriptions, he has the hardware and software experience, perfect guy for the job, still remains to be seen whether gopro can transition. just being in the camera business is tough. >> we've heard skeptics from the company on that front. when we come back, more on gm from someone who's covered the auto industry for deck ailds.
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kit kelly joins us on the phone with breaking news from david terp. good morning, kate. >> good morning, carl. i spoke briefly with david tepper this morning ing who said his view has changed somewhat since last month when he spoke at a conference and said famously it's nervous time in the markets for a number of global macro reasons dealing with central bank. now that the ecb has made this somewhat historic decision today, he indicates he's feeling a little better. he walked through concerns he had only a month ago and talked about obviously the ecb, chinese growth, and the stimulative policy there and whether or not it was happen, instability in the ukraine and then of course u.s. growth or the lack thereof. as of today he says the bottom line is all of those things alleviated one by one by one to a certain extent and obviously today's move was actually -- was also huge in that regard. so my sense is from talking to him, although he was a man of few words on this score today, that his nerves had eased a
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little bit. i don't know if he thinks we're totally out of woods, carl, but he certainly thinks the ecb is taking the right steps. >> and think back to those initial comments regarding nervous time, part of it is the -- the description for that was because he thought the ecb was behind the curve. right? >> yes. he thought easing today would be absolutely essential, but he even said as i recall i'm not sure it's even enough. it may be too late for them to be able to stimulate the economy in europe as it needs to be stimulated. however, today obviously in addition to going to this negative interest rate policy they've taken a number of other steps as well and they haven't ruled out the idea of these large-scale kiwi-type purchases down the road. they've gotten creative in terms of their policy tools and there could be more to come. >> we'll keep our eye on the marks in light of that news, kate. thank you very much. kate kelly talking to david tepper earlier this morning. back to gm. mary barra saying 15 employees
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have been fired over the company's recent ignition switch recalls. mickey maynard is a former "new york times" detroit bureau chief. great to have you back. good morning. >> hello, carl. thanks for having me. >> i think we were trying to join you on the phone although i'm having trouble hearing you. do we have you? all right. i guess we do not have her. if you're just joining us, they did unveil what they're calling the valukas report, anton valukas, the former u.s. prosecutor, who found no wrongdoing or cover-up so to speak but mary barra did call it a saga riddled with incompetence and the dismissals of those 15 employees, about half of those, by the way, executives. over to margaret brennan. >> check out barnes & noble, teaming up with samsung to develop a tablet. they'll develop note digital software and shift away from building its own tab lets. barnes & noble trading up 2.86%. back to you. >> thank you very much.
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♪ take a look at apple's latest ad showing off the power of ios, possibly the latest signal the company is ready for wearable tech. many products are featured in the video including our breakthrough, misfit shine. what a breakthrough. reports of this huge call on these october 700 calls. stocks up to 644 today. >> it's an interesting call because of the timing of it.
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the idea that people will be so excited once the new iphone comes out. i was looking at a one-year apple chart. it looks like netflix in its hay day. it's up around 650 now. >> up 45% on that chart right there. >> that's crazy. up 45%. >> here's the good news -- trading at 15 times earnings. >> yep. people have been betting against apple and a loot of the sentiment is still against them but we saw at wwdc their ambition is still huge. if you have doubts about their ability to execute in the cloud, that's one thing, but they certainly have the plans and the ideas. we'll see the hardware soon. >> they are opening up the platform. that's very clear. that's what this new ad is all about is look at all these cool gizmos that will plug into your phone, the more they get embedded into people's lives that way the better off they are. i still think the run-up is due to the iphone. iphone 6 could be a huge upgrade
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cycle. this is where 70% of their profit comes from, these big screens are very attractive. i own the stock, happy to own it. >> 5c wasn't a stock lifter. >> not a game changer in the way the big screens are. when samsung came out with a new phone, it was ridiculed by the apple people, so big and gauche. then gazillions of people wanted them. i've been waiting two years. i can't wait till we get the big screen. >> amazon a cloud player trying to move into hardware here and apple, the hardware winner last cycle, trying to move into cloud. you place your bet to see who you think is going to win. >> we want to get back to gm. mickey maynard, former bureau chief for "the new york times," joins us this morning. good to have you. >> hey, carl. the thrill of live television. >> yes. we make it work every day. your thoughts on not just her address to the troops and the press but the point that the report itself is still i guess
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unavailable for a journalist to read. right? >> right. so general letters had a town hall with employees and a press conference with reporters and has an analyst meeting at 1:00 and nobody's actually seen the valukas report. so we've been told that it includes 90 arias for general motors to improve. we've been told by gm that they fired 15 people. but no reporters or analysts have been able to get inside that report and there's a lot of unanswered questions. >> mickey, the big headline of course that's emerged in the last couple days is the fact that regardless of the details of this report on the whole it basically insulates the top executives from any sort of awareness of what was actually going "on the money" the engineering side during the course of some of these recalls and some of the awareness of some of these issues. i'm wondering as someone who's covered this company and industry for so long, can we chock this up to being the
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bureaucracy of gm and is this a possibility this was purposeful insulation? >> i'm a little flabbergasted by that. three top ausmsers of gm, the current ceo, the head of legal, and the head of global product development, were all exonerated as saying they knew nothing about it. but then that raises the question, many layers below them, people were making critical decisions that were affecting people's -- literally affecting people's lives. and you have to wonder how murky was it that this information didn't get to the top at gm and also remember we just had a situation at toyota four years ago that was somewhat similar where there was information that wasn't getting to the top there either. so really makes you wonder about the way organizations are run. >> mickey, mary barra made a point about the unfettered access that valukas had, millions of documents, hundreds of employees, third parties. he is the chairman , gm has procured their services far
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decade. do you think the report was unbiased and fair? >> well, i hope it was unbias and fair, and he does have a great reputation. he did the 2,200-page lehman report that came out five years ago. so that was very well regarded. i'm also going to be very interested to see what kenneth feinberg has to say about compensation for accident victims. it's kind of like gm is passing this off to two joultd side parties to really determine what it owes people and how it's been running its operations. >> mickey, in a statement feinberg said that he and his team will begin collecting claims as of august 1st but they're still trying to work out the exact details around this. what do you think the scale of this compensation program needs to be to actually make up for these very steep losses on behalf of these victims? >> well, he handled 9/11 and he handled the bp compensation, and in the case of 9/11, you have to remember that's now over 12 years ago, people got on average
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$1.8 million to the victims. so i think it has to be a significant number. i think it has to be a number in a million area for individual victims' families. and remember, we're not sure that it's just 13 families. that question came um over and over again whether there are more deaths and more crashes involved in this. and so -- feinberg might determine a far higher number of people and a lot more money for the victims. >> reuters is up in the 70s by their count, although the company obviously disagrees with that so far. finally, sales, mickey. may, up 12.6, april, up 6.9. do you think it's had an effect and is that going to continue? >> well, every time someone with one of these vehicles goes in to get a repair it gives gm an opportunity to sell them a new vehicle. and let's remember that these were inexpensive vehicles. these were vehicles that a lot of young people bought. they're vehicle where is people are probably now looking to grow
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up a lit bit in vehicle size. so if gm handles this right, i'm not saying that it's going to make lemonade out of lemons but it definitely has an opportunity to right its reputation with the public. >> mickey, great having you. thanks for your insight today on an important day for the company at least. >> thank you, carl. >> former detroit bureau chief for "the new york times." simon is wrapping up an inebl day for europe. >> ecb day and this is how the bosses in europe are ending the session. much more spectacular earlier on. a big bounce on the stock markets in europe. the dax hit 10,000, many of the markets up 2% but have settled back down to where we close. the european central bank had small cults in interest rates which takes the depp sits on overnight reserves consumer sentiment with them to negative territory, 0.1%, so banks will be charged for doing that, for loaning them money overnight. the second piece of information is there are going to be --
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there's a new bunch ofry li quid ti available to the banks to lend to the real economy. i heard a figure of 400 billion euros but have not seen that confirmed. a lot of cheap money for four years. no q.e. today. however, mario dragge said they were intensifying their assets to buy asset-backed securities across the eurozone. this is the quote he wantious to hear. >> we think it's a significant package. are we finished? the answer is no, we aren't finished here. >> you can see the way in which the stock markets gained here and fell back as people thought is it really the shock and awe that we expected. interesting that the banks have actually let that surge, a lot of the euro soin banks, the names you know well, are in positive territory. here we go.
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commerce bank, uni credit. my question would be they're still coming through with the rules. can you get that cheap money and kind of sit on it and in 2016 say we weren't able to lend it, you can have it back now? these guys have stress tests to get through. the other thing i wanted to mention was the euro. if there's one thing mario draghi wants to do is push the euro down and he managed to do that the best part of a u.s. cent, but as you can see it's bounced back and that's not really where they wanted to be at the end of ecb day. back to you. >> all right. thank you very much, simon. when we come back, mark an drese on why e he thinks the ceo is a patriot, not a traitor.
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mark andrey see sat down with our sorkin. >> he's the definition of a traitor. they don't get much more traitor than that. i will say i'm in the distinct minority out here. most would pick the other designation. >> turning to tech, when it comes to domestic names he says these two are winning the smartphone war. >> the unfunny thing that's happening is apple and google are both winning.
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the iphone is selling like crazy worldwide and growing incredibly fast. android is this gigantic success and there's over billion android phones. >> let's bring in john steinberg from the road. good to have you back. >> good to be here. >> he made some news today. >> he went on to say in the interview -- all these things were out there, everybody knew the spying was going on. but that's not true. whenever shoe drops, everyone is more surprised. the image of people embedding spy software into cisco hardware, everybody is shocked again. i do believe he's providing a service, snowden is airing things people need to know. >> don't forget how angry the tech community was when this information came out, claiming they had no idea about prism and that the government was doing this. i think that was a questionable comment to me. >> they either didn't know or did know and weren't actually telling anybody because it wasn't a pr issue.
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i don't think his comments make sense. i understand there's an argument to be made that snowden's gone too far, when does it stop. he is in russia, after all, but it's not so cut-and-dried. >> makes sense in the context of who mark andreessen is. he's provocative in silicon valley. he realized what he was saying. he says obviously i'm in the minority out here but he's obviously a traitor. it's not obvious because the american people don't know who is on their side. i think a lot of people feel like their trust, their privacy was betrayed by the government in this situation. they're not sure exactly what edward snow den has been traded but they're suspicious of him too. it will probably be years from now before we have a clear answer on that. >> andreessen says it's hurting u.s. companies. >> and the white house lacks a cohesive response, leaks continue. >> as far as u.s. companies go, they knew and didn't sthi save anything or didn't know, and if you're a foreign government or
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citizen why would you want this stuff in your country? there's an article in the paper today, i think in the journal, saying china is against windows 8 because the state government is saying on the 12:00 news show that microsoft is spying. a year ago that would have been crazy to say. now who knows what's in what u.s. software? >> a much bigger problem and gives them an excuse for trade barriers. john donahoe betting on bip coin's future in commerce. take a listen. >> i think there's no doubt digital currency will play an important role going forward and at papal we'll have to integrate digital currencies in. >> how quickly do you think you'll see a bitcoin in papal? >> i can't give a specific time but you'll see it used in different use cases, peer to peer, cross-border transaction, someone sending currency to someone else. over time you'll see it with some merchants accepting
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bitcoin. i think the underlying theme of digital currency is something we're awir of and will pay attention to. >> do you own any bitcoin personally? >> i do. >> nice question at the end. i picture youtube mining together. >> i'm still holding on to my couple coins. good for donahoe. rather than saying bitcoin is stupid he's saying we're going after this. i always like to say what companies companies should buy. coin base is the easiest to use buy and sell for bitcoin. andreessen is an investor in it. on the board of ebay. mark andreessen, pick up the phone, get the deal for ebay. >> on this bitcoin front, john donahoe basically had to address this because people were using p paypay as a payment mechanism to buy bitcoin. can you as a platform be allowing the transfer of those assets and not actually accept them yourself? it gets to the point where there's so much transacting
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going on, you have to integrate it into the system. >> that's the point. nature finds its way, like "jurassic park," basically pushing them into it. >> didn't end up so well. >> but nature always finds a way. >> a lot of people are talking about the value of bitcoin as a platform. very few will defend the value of any individual bitcoin. is it worth $400, $600, $700? don't know bp. don't get it mixed up. bust just because these companies are saying we like it as a platform doesn't mean they'll be worth a lot of money. like a hot potato. nobody wants to hold it too long. >> and ex-bay is large enough to push it into a purchase experience, which people are saying you can't do anything with it other than speculate on it. next thing you know all the other cards fall. >> john donahoe has enough money to play with that he can do a social experiment, see how it turns out without much to lose. doesn't sound like he has a giant portfolio with bitcoin,
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just dabbling. >> absolutely. >> keep your eye on twitter today. margaret brennan with a quick market flash. >> check out twitter at session highs, going to acquire namo media for mobile devices. the ads are pronotion mall material that blend into web sites. they say technology will be rolled out into the platform that twitter bough last year for more than $300 million. right now, twitter shares trading up just under 4 peshsz. back to you. >> thank you very much. when we come back, chinese e-commerce giant ali baba thinking with its feet behind the company's new $200 million investment. plus is this the end of humanity as we know it? details on softbank's new $2,000 robot that can, quote, make its own decision to act with love. but first rick santelli, what are you watching today? >> well, of course we're going to be watching and doing a bit of a postmortem on the ecb press
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conference and decision this morning. we're going to take a quick look at some of the issues regarding industrial metals in china and the whole notion that, hey, if you liked it the first time around you might like it better second time, and then of course we're going to talk about the 258 yield in tens and fact the euro versus the the dollar is higher on a day when the ecb was definitely hoping it was lower. all after the commercial break. transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right. you're thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it's no surprise to you that companies depend on today's xerox for services that simplify how work gets done. which is...pretty much what we've always stood for. with xerox, you're ready for real business. which is...pretty much what we've always stood for. drivers want to go further with their electrical vehicles.
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coming up next, did draghi deliver what was expected? and she holds the second best records in "jeopardy!" history and julia collins wants to invest her winnings. she'll join us live. she has a little trivia for the traders as welp then some bad trades out there today -- a sinking yacht, a robbery caught on tape. you won't believe videos. all straight ahead. see you in a few. >> thanks so much. ebay, amazon and the yankees all in one? ali baba, the chinese e-commerce conglomerate set to ipo this sumner the u.s. has purchased a stake in the u.s. soccer team. jack ma announced overnight the company is buying a 50% stake in
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the ever grand football club for almost $200 million. the late e bid to expand into entertainment content, truly the everything store, are you shaking your head in a good or bad way? snay think it's in a good way. i'm not sure what the method is to the madness here but they're making a lot of investments rather than acquisitions. some of these are trojan horse type investments i think that once they have the china market locked up to their satisfaction, which may thai may or may not accomplish, they'll be able to unlock the value in some of these international investments they've made in social, in message, et cetera. not exactly sure about the sports window. >> ali baba tries to become more of a content company. you have to believe that investments in sports teams negotiating those content rights will be a big business. >> that's it. he's buying content. and sports is great because it's live, a tune-in moment if you're doing live video casting and things like that as well. also it doesn't have an incremental cost.
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it's like google buying twitch, which hasn't been closed or formalized. people playing video games, streaming online, buying assets without a cost of production like netflix. >> interesting. etlet's check in with rick santelli. dow up 60. hey, rick. >> hi, carl. let's look at what's going on. we have another central bank trying to stimulate the economy by pegging interest rates and potentially trying to weaken a currency, pay much less attention to the underlying fundamentals of their broad economy. the result is equities higher and interest rates lower. we've seen this movie before, haven't we? as long as it keeps working, i guess we can all kind of lay back and look at this kind of hollywood set that these central banks are creating calling them an economy, but i still don't think they are unless these time-outs are used for truly addressing the reasons that we have, for example, 50% plus unemployment on the youth side in some of those southern economies.
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in this country we have our own issues there. once, twice, three times used as collateral. listen, there's ban lot of talk of late about copper and, you know, how it's a sentinel commodity, what we used to call it years ago, a sentinel commodity for the economy, whether it was domestic or global. i harken back to many points in history, the last being of course the credit crisis in '08, if you looked at copper rising with the rest of the market heading south doesn't mean you still can't use it that way. there was an gnarl the financial sometimes that i love, on the screen, a private chinese metals company is alleged to have pledged the aluminum and copper stocks store t at white houses in king tow as collateral for loans. not a new story. maybe they're finding out more names and specifics but the notion that things like copper and aluminum have been used as collateral for loans goes back many years and is one of the reasons especially out of china
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you can't use these as the same sentinel indicator we once did. interest rates. i like to draw my rates. people have been barking at me that 244 closing yield about a week ago, that's it, game's over. listen, normally that would make some sense but i still see a general lackluster global economy and i think europe, look at the trade numbers, our experts were weak. i think some of that is europe. doesn't mean we have to follow them directly but it doesn't hem us. the long and the short of it is the 2.50 was the big breakout. now we e've come back 2.50, add 3 to 2.60 is where you need to call yourself wrong for now. 2.60 is far is the high yield close yesterday and i will stick with that. if you close above 2.06 you're supposed to hunker down for selling but right now keep the position of lower rates. back to you. >> rick, thank you very much. when we come back, can robots? behind softbank's new robot with
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a human heart. and meet our new boss. ial noise financial noise financial noise financial noise
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bulldog: [yawn] bulldog: i just had a dream i was at mattress discounters with tempur-pedic and the largest selection of memory foam mattresses under one roof! icomfort, by serta... optimum, by posturepedic... ahh! comforpedic, by beautyrest... ooh! 48 months interest-free financing, free delivery, and queen-size memory foam mattress sets as low as $697! that's more mattresses than you can shake a bone at. ♪ mattress discounters welcome back to "squawk alley." the dow up 77 points. when all of this happens, you can imagine the byciders will be
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taking some profit, especially private equity firms selling down stakes in some of these buyout boon companies. just this week four firms shoulder 20 million st. mary'ss in nielsen holdings. shares look a little bit of a hit earlier this week, sold about a billion dollars, or 5% of the company's total shares and that's a few months after these firms sold about 30 million shares. blacksto blackstone, carlisle, heldman and freeman all sellers. kkr didn't sell anything. in all the firms, 20% of nielsen, that's down pretty sharply from as much as 50% they owned last year. not just nielsen. this week alone firms sold stock in allison transmission, westco aircraft, a couple other names as well. as these companies near 52-week highs, owners will take advantage of these deals. there have been 95 of these deals price sod far this year, the most ever.
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banks are battling for this business as much as seven underwriters competing to place each of these individual stock names. that's favorable for the issuers, not so favorable for the banks, guys. they can only sell during this sweet spot in between earnings season so if you're looking at names that could have private equity holders could be looking for markets more favorable than they are. >> intercontinental exchange wanting to simplify the structure of the market. bob pisani is live at the sand ler o'neill global exchange conference in new york and spoke to the ceo, jeffrey sprecher. >> jeff telling me he wants simple trading structure but businesses as well, not great for stocks right now. he says the problem is the poor volumes are reflecting an uncertain economy. >> these markets are we run are the collective wisdom of markets, right, the public exchanges. and what you're seeing is all
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those factors you just mentioned coming together with everybody saying similar things and waiting for the next shoe to drop if you will. >> now, what about the nyse? a lot of management changes. tom farleigh, the new ceo, coming in on monday. isle be talking to him at that time here on cnbc. the important thing is jeff says he wants to see changes in management. he wants to see a simpler trading structure as well. >> because the new york stock exchange itself is -- well, it's a big name and amazing company, it's really a small piece of our overall business so we have the ability to take some risk to try to change things for better. you know, i can lose a lilt bit of market share, i can lose a little bit of revenue in order to make the overall business a better business. and that's what you see us doing. we're simplifying things, eliminating order types, flattening the organization, getting closer to our customers, we're trying to bring back the confidence, and that's what
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ultimately goes markets. >> fewer exchange, fewer types, a big change in the way they've been doing business in the last few years. less chances for technological failure and just easier to run the business overall. mary jo quite, head of the s.e.c., speaking in about 15 minutes. jeff believes she'll announce new initiatives for trading small cap stocks and incremes other than the penny. ali baba, no word on where that ipo is going. nice niles says they made a big pitch two weeks ago. back to you. >> would be a lucky day in china for sure. thanks, bob. bob pisani. when we come back, a robot with the heart of a human. a look at the technology that's either a huge leap forward or the end of the houlen race as we know it. uman race as we know it. (vo) watching. waiting. for that moment, where right place meets right time.
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at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. new robot prototype ta softbank has launched. it can read human emotions. think about that. it can read human emotions. the robot will go on sale next year for just over $1,900. what do we know about this, john? >> you talk about the pro bot with a capacity to love, that's
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nice, but i want to know does it have the capacity to hate? that's what i'm worried about. it's not the positive emotions. that's fine. it's what happens after midnight if you feed it. >> i wonder if it might be voiced by scarlett johansson. a new revenue stream. >> i just watched "robo cop 2" on the plane last night and i was surprised how good it was. >> i still can't believe you're going to watch the entire series of ""orange is the new black"" over the weekend. >> i'll definitely get through six or seven hours. the challenge is can i get through 12 or 13. >> you're chitting to six or seven. >> i will say on "squawk alley" by monday morning i will have watched the whole season. i will put up some instagrams but i'm committing by monday morning on the show i will have watched the whole season. >> time go-to go long, netflix. separate from john, david tepper, a built of a delayed reaction but we were up about 40
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points when kate kelly came to the phone, said she talked to tepper, who tells her that his concerns about the market have been i leave year to dated post ecb. >> almost immediately market jumped ten points. traders saying that sentiment sinking in a little bit. >> big jobs day tomorrow. don't forget nonfarm payrolls 8:30 a.m. eastern time. thanks, john. let's get to "the half time." hey, scott. >> welcome. here's today's game plan. super mario. did draghi deliver enough of the markets and your money? i'll take winner $400,000, alex. she schooled the competition in "jeopardy!" winning 20 games in a row. now julia collins joins us live and she's going to take on the traders. worst trade of the day. what happens when a band of thieves make off with a bike and the whole thing is caught on a gopro? you have to see it to blift.
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